How to know when to really get out of US Bonds...

Discussion in 'Financial Futures' started by TheDudeofLife, Nov 4, 2006.

  1. http://biz.yahoo.com/t/48/5911.html


    It looks like Bill G was getting real long in 2005..He stopped buying in Dec..If he starts selling Will it be time to get short bonds.? Look at what the insiders of the Homebuilder stocks were doing last year...
     
  2. rosy2

    rosy2

    pimco has been saying rates are going down for a long time. if anything, when bill g starts selling bonds I would start buying
     
  3. You do not write if you are interested in long term or short term but I assume if you refer to year 2005 that your interest is long term.

    The monthly futures chart of US 30 year treasury bonds shows price deceasing to less that the values of a long term trend line. I suspect lower bond prices (higher inflation values and higher interest rates) may follow.

    The chart is attached.
     
  4. that chart looks to me in an uptrend since 00.
     
  5. KS96

    KS96

    Definitely. So far so good.
     
  6. That chart's wrong! Bad data! (MOST monthly charts of Bond futs have erroneous prices. The coupon changed from 8% to 6% in 1998)
     
  7. hmm...u got a good chart to show us?
     
  8. rosy2

    rosy2

  9. TYX is a yield index. Yield curves are inverted compared to the bond price curve. The yeild curve does show yield rising above the downtrend line of 6 years, since year 2000. Rising yield = falling bond price.